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MIAMI BUSINESS WIRE

Press Release - January 8, 2007
Kid's Business Is No Child's Play
Why Companies That Cater to Children's Needs Are Booming

Savvy marketing strategies, a superb analysis of market research, the advent of technology and a reported 20 million children under the age of five living in the United States are a few reasons companies that merchandise baby and child products stay ahead in the highly competitive retail industry. Other factors that allow growth and sustained success are a thorough analysis of their consumers' behaviors and a genuine interest in the well being of the consumer.

According to Edgar Mendez, investment banker with The Mercanti Group, publisher of a monthly newsletter, Mercanti Chronicle, the analysis of "soon to be parents" behaviors is crucial to understanding the tremendous growth potential in the baby and child product industry. "Unlike our parents, my wife and I waited longer to marry and have children. As a result, we enjoy more disposable income that we happily spend on our children," Mendez explained. The U.S. Census Bureau reports that the average age for a first time mom is 27, up from 24 years old in the last generation.

Parents also search for products that have educational and cultural value. Experts such as Mendez note a recent trend "incorporating ethnic themes to old-fashioned concepts."

For example, Baby Abuelita Productions was established to create a link between Latino grandparent and child. The company produces singing dolls that preserve Hispanic traditions, specifically Spanish-language lullabies and nursery rhymes, that the owners felt were being lost through Hispanics' acculturation into U.S. society. When one out of two births are to Hispanics in three of the largest U.S. states, the owners feel confident that the songs they cherish from their childhood will be heard by future generations.

The company's ability to interact with parents, children and other adult consumers through touching heartstrings of childhood memories and the desire to educate future generations about ethnic traditions has catapulted sales of Baby Abuelita dolls. "Experts say the Baby Abuelita dolls appeal to an increasingly powerful but underserved consumer group. As a result, Baby Abuelita and hundreds of other Spanish-speaking and bilingual toys are positioned to cash in on the nation's shifting demographics," Mendez said.

The owners of Baby Abuelita are witnesses to the growth of the child product industry. The estimated annual expenditures on the 20 million children ages 1-5 serve as a powerful forecaster of success. Based on USDA and Census Bureau research, over the first five years of a child's life, middle-income families spend an estimated $67,130 per child.

"We will continue to be a step ahead of the consumer demand. Already, we provide downloadable ring tones to meet the latest trend in personalized cell phones. We can't wait to unveil several projects that will further expand our passion of bringing children of all walks of life closer to their culture," said Carol Fenster, COO of Baby Abuelita Productions.


 
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